Logistics startup Ripplr is in the final stages of closing a $30 million equity investment round led by SBI Ventures, the venture capital arm of India’s largest public sector bank, according to three sources familiar with the matter.
Existing backers, including Japan’s Sojitz Corporation, Fireside Ventures, and 3one4 Capital, are also chipping in. The series C round is set to double Ripplr’s valuation to about $200 million, two of the sources confirmed to MONIIFY.
Ripplr co-founder Abhishek Nehru declined to comment. SBI Ventures and Sojitz did not respond to queries at the time of publishing.
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Connecting the dots
Founded in 2019, the Bengaluru-based company offers a distribution platform that allows brands such as Nestle, Hindustan Unilever, Britannia and ITC to sell their products directly to retailers and local department stores across 10 cities in India.
A second part of its business is focused on providing logistics to brands like Flipkart and Fabindia in more than 15 cities in the South Asian nation, according to its website.
The retail logistics sector in India, the world’s most populous country, has seen a surge in interest as companies continue to grapple with challenges in reaching customers in small towns and remote areas. The trend bucks the funding drought seen in other sectors.
Startups such as Shadowfax, XpressBees, and Shiprocket have pulled significant funding in recent years, while e-commerce delivery firm Ecom Express is set for an IPO following rival Delhivery’s 2022 debut.
Ripplr is trying to differentiate itself from the pack by focusing on logistics for food and household staples through its plug-and-play platform.
It competes with other wholesale platforms such as Elastic Run, ApnaKlub and Udaan, which is the largest player in the category with nearly $2 billion funding raised to date.
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Cash burn
In the fiscal year 2024, Ripplr’s revenue increased 40% to around $123 million and losses widened 45% to $10 million, according to company filings with India’s Registrar of Companies, accessed through business intelligence platform Tofler.
While it brands itself as a logistics startup, the financials show us that it derives more than 90% of its revenues from the distribution side of the business.
Aside from the current round, Ripplr has raised $56 million through equity and debt investments to date. Its last funding round in mid-2023 saw it raise $40 million from new investors like food companies Bikaji and Neo Foods, which it used to build up its technology and grow its presence in India.
Edited by Victor Loh. If you have any tips, ideas or feedback, please get in touch: talk-to-us@moniify.com
